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Dismiss VA home loan myths about the federally-backed, zero down loan program.

Myth #1 – VA purchase loans are not for short-sale or foreclosed real estateMyth #2 – Surviving spouses don’t qualify for VA mortgagesMyth #3 – Military members deployed overseas can’t get a VA-guaranteed loan.Myth #4 – All realtors are good VA home loan advisorsMyth #5 – VA loans take forever to close

Fact #1: VA home loans can be used to purchase foreclosed and short-sale with as little as no money down. VA-eligible borrowers may have an advantage over those who need up to 20% cash down to qualify for conventional loans. A VA appraiser is trained to certify value and safety and can spot red flags of distressed properties.

Fact #2: Veterans, active duty and certain surviving spouses are eligible for VA home loan benefits. Qualified surviving spouses may borrow up to $417,000 (more in high-cost counties) with no money down. And, surviving spouses are exempt from paying the VA funding fee.

Fact #3: Military members deployed overseas can sign a document called power of attorney or (POA) designating a spouse or someone else to act as on their behalf for a VA loan transaction. The POA grants permission for the attorney in fact to sign on behalf of the VA-eligible borrower. The service member must give intent to obtain a VA loan through an email, letter or other correspondence. Only a spouse can satisfy the occupancy rule (move in within 60 days of closing) in a deployed serviceperson’s stead. Otherwise, the borrower serving away from home will be granted an extension of up to 12 months to occupy the home.

Fact #4: A VA certification for real estate agents does not exist. Therefore, a real estate agent should not be used as a reliable source for VA loan information. Real estate agents who are not well-informed about VA loans can even unintentionally dissuade VA-eligible borrowers from choosing the program which may be best for them. A VA specialty lender, one whose majority product is VA-backed loans, can provide reliable VA loan facts.

Fact #5: If a lender is specialized in VA home loans, then closing can often happen within 30 days. The VA-approved lender is given flexibility to decide on its own whether a borrower is a satisfactory credit risk. Even a borrower with extenuating circumstances may close quickly.

To check out my profile, references and the references of the other agents, just click on my picture to go to my profiles and read what our clients say about us. Pick the broker that you think is right for you. Of course I hope it’s me, but if not then good luck.

Here are some tips on how sellers can best position themselves to get multiple offers, and how buyers can best position themselves to get the house of their dreams.

For Sellers:

Spruce Up. It helps tremendously if the home is move in ready. Repainting the inside, repainting the front steps, power washing the outside, and cutting the bushes back is definitely worth the effort.

Take professional Pictures! Do not take the pictures with a camera phone and try to slide by… Do NOT take just a couple… The MLS lets you post over 20, why would you give just 1 picture taking from the county records? Laziness! Get another realtor, your realtor should give 1000% like their hair is on fire! Take enough to spark interest!

Build up excitement. Leak the word out in the neighborhood that you might be putting the house on the market. Then list the house on a Monday with no showings until Friday to generate interest to see what the home has to offer.

Use An Experienced Agent. Do not get emotional when offers come in, it is a business transaction of your most precious object, your home. The goal is to net as much as you can in the shortest amount of time. The longer your home sits on the market the “staleness” sets in and you lose negotiating leverage. Read the contracts thoroughly, and take note of contingencies!

For Buyers:

Put down a big deposit. The deposit, or earnest money, can speak volumes. The more earnest money you put down, the more serious you appear to the seller.

Limit contingencies. If a buyer demands too many contingencies, that can decrease the appeal of the offer.

If there’s no financing, buyers can waive the right to an appraisal (typically a house has to appraise at or above the purchase price in the contract). I have even seen buyers bring a home inspector or contractor with them to a first or second showing to look at structural issues and help the buyer make a fast decision, without a home inspection contingency.

You’ve negotiated a successful offer, resolved all the inspections items, and have received your Clear To Close. You are so close to ownership that you can feel the new keys in your hand. The only thing standing between you and moving into your new home is the closing table.
The following is Frequently Asked Questions about What Happens at a Closing in Florida…

WHAT IS CLOSING?

Closing (also called settlement) is the legal transfer of property ownership. Usually, but not always, possession is transferred at closing.

WHO ATTENDS CLOSINGS?

Face-to-face closings are common in most states, although Florida does not require them. Your Realtor can provide details for your situation. Since Florida has many Foreign Buyers and Sellers, you have the option of doing a “Mail Away”.
The participants usually include:• You, the buyer.• The seller.• The real estate agents representing the buyer(s)and seller(s).• The closing agent, the title insurance representative, and the escrow agent. Often one person fulfills all three roles, coordinating and recording the exchange of the documents and money, disbursing funds, and handling various closing details.

WHERE IS CLOSING HELD?

Closings are usually held at a title company’s office (in Florida, it’s typical for the seller to choose the title company since they pay for the title insurance). Their job is to confirm the current legal owner of the property, reveal any mortgages, liens, judgments or unpaid taxes on the property, and identify any restrictions that may affect the sale of the property.Any problems need to be corrected before a buyer can receive “clear title.”

WHAT DO I NEED TO BRING?

Your Realtor can advise you on what you’ll need to bring to closing, but typically buyers must provide:• Payment of closing costs• Proof of insurance• Photo ID

WHAT HAPPENS AT CLOSING?
You’ll sign many documents. Rely on your Realtor to review these documents and answer any questions you may have. Frequently-used documents include:

Truth in Lending statement – a final summary of the terms of your loan

Mortgage note – a legal obligation to repay the lender according to stated terms

Deed of trust – the legal transfer of ownership; gives the lender a claim against your home if you fail to meet the terms of the mortgage note

Affidavits – any binding statements by the buyer or seller

Riders – any contract amendments that impact your rights

Any additional documents required in your state.

Once all documents are signed and all monies have been paid and dispersed, possession is transferred and you receive the keys to your new home. Be sure to keep your closing documents in a safe place for future reference. Some of the expenses associated with your home purchase are tax-deductible.

According to the latest housing data released by the Orlando Regional Realtors Association, Florida’s housing market continues to show growth and recovery. Since March of last year (2012), home prices in the Orlando area have increased by 21.74% to a median home price of $140,000. On a monthly basis, this number is up 5.26% from February 2013’s median price of $133,000.

“March marks the 15th consecutive month that the statewide median sales prices for both single-family homes and for townhouse-condo properties rose year-over-year,” said Florida Realtors President Dean Asher.

One of the main reasons for the jump in home prices is that the number of non-distressed “normal” home sales increased by nearly 50%. Another big driver of home prices is net migration. According to a recent blog by Investor Intelligence, the Orlando metro area grew by 50,000 people last year alone. In addition to this, the dwindling inventory of listings has had an effect on home prices. In March 2013, inventory was 19.95% less than it was in March 2012.

The number of existing homes available for purchase in Orlando is continuing its steady decline that began all the way back in July 2010 at 16,563 homes and is now at 6,937 homes. In March 2013, current inventory combined with the rate of sales created a 2.66-month supply of homes in Orlando, which can be compared with the 3.56-month supply in March 2012.

Rapidly rising interest rates are spurring Orlando homebuyers into action and in May contributed to yet another double-digit increase in sales (15.63 percent to be exact), while unbearably tight inventory again sent prices climbing.

“The relative good news about inventory is that there was a 10 percent increase in the number of new listings that came on the market in May, the majority – 65 percent – of which were “normal” sales,” says Orlando Regional REALTOR® Association Chairman Steve Merchant, broker-owner of Global Realty International. “We’re seeing more and more homeowners who realize that now is an extremely opportunistic to sell, and sell fast.”

The median price of existing homes sold in Orlando during the month of May rose 23.33 percent, to $148,000, when compared to May 2012 and 2.99 percent compared to April 2013, reports ORRA. Orlando’s median price has risen more than 37.04 percent in the 17 months since January of 2012.

In addition to the overall median increase, each individual sales type experienced a year-to-year median price increase in May, with foreclosures leading the way with an 18.07 percent jump. The median price of short sales increased 14.00 percent; the median price of normal sales increased 12.50 percent.

Completed Sales

Members of ORRA participated in the sales of 2,855 homes (all types combined) that closed in May 2013, an increase of 15.63 percent compared to May 2012 and increase of 3.14 percent compared to April 2013.

Single-family home sales increased 16.64 percent in May 2013 compared to May 2012, while condo sales increased 7.85 percent.

Compared to May of 2012, the number of short sales (620) decreased 8.96 percent and the number of foreclosures (539) decreased 12.78 percent. The number of completed traditional sales (1,696), however, is a 44.96 percent increase compared to last year.

In May, short sales and foreclosures made up 40.60 percent of the entire sales pie, while normal sales made up 59.40 percent. Last year in May, those percentages were 52.61 percent and 47.39 percent, respectively.

Homes of all types spent an average of 68 days on the market before coming under contract in May 2013, and the average home sold for 96.70 percent of its listing price. In May 2012 those numbers were 85 days and 95.76 percent, respectively.

The average interest rate paid by Orlando homebuyers in May was 3.64 percent. Last month, homebuyers paid an average interest rate of 3.49 percent; this month last year, homebuyers paid an average interest rate of 3.89.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 8,631. The number of pending sales in May 2013 is 16.13 percent lower than it was in May 2012 (10,291) and 1.75 percent lower than it was in April 2013 (8,785).

Short sales made up 57.31 percent of pending sales in May 2013. Normal properties accounted for 29.58 percent of pendings, while bank-owned properties accounted for 13.12 percent.

Inventory

The number of existing homes (all types combined) available for purchase in Orlando is 11.78 percent below that of May 2012 and now rests at 7,272. Inventory increased in number by 70 properties over last month.

The inventory of single-family homes is down by 14.93 percent when compared to May of 2012, while condo inventory has decreased by 1.42 percent.

Current inventory combined with the current pace of sales created a 2.55-month supply of homes in Orlando for May. There was a 3.34-month supply in May 2012 and a 2.60-month supply last month.

Affordability

The May affordability index is 212.25 percent, a decrease of 10 percentage points from April’s index of 222.36. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.)

Steady increases in median price have caused the affordability index to drop 40 points since January 2013.

Buyers who earn the reported median income of $55,100 can qualify to purchase one of 3,702 homes in Orange and Seminole counties currently listed in the local multiple listing service for $314,131 or less. First-time homebuyer affordability in May decreased to 150.93 percent from last month’s 158.12 percent.

First-time buyers who earn the reported median income of $37,468 can qualify to purchase one of the 2,541 homes in Orange and Seminole counties currently listed in the local multiple listing service for $189,874 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando were up 7.85 percent in May, with 426 sales recorded in May 2013 compared to 395 in May 2012.

The most (85) condos in a single price category that changed hands in May were yet again in the $1 – $50,000 price range and accounted for 19.95 percent of all condo sales.

Orlando homebuyers purchased 270 duplexes, town homes, and villas in May 2013, which is a 21.08 percent increase compared to May 2012. Most (40) fell within the $120,000 – $140,000 price range category.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in May were up by 8.32 percent when compared to May of 2012. Throughout the MSA, 3,464 homes were sold in May 2013 compared with 3,198 in May 2012. To date, sales throughout the MSA are 9.48 percent above this time last year.

Each individual county’s monthly sales comparisons are as follows:

Lake: 14.37 percent above May 2012 (565 homes sold in May 2013 compared to 494 in May 2012);

Orange: 6.48 percent above May 2012 (1,709 homes sold in May 2013 compared to 1,605 in May 2012);

Osceola: 5.87 percent above May 2012 (541 homes sold in May 2013 compared to 511 in May 2012); and

Seminole: 10.37 percent above May 2012 (649 sold in May 2013 compared to 588 in May 2012).

This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the My Florida Regional Multiple Listing Service. Neither the association nor MFRMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or MFRMLS may not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.

ORRA REALTOR® sales, referred to as the core market, represent all sales by members of the Orlando Regional REALTOR® Association, not necessarily those sales strictly in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.

Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA.

Bay Hill is one of the most prestigious communities in Dr. Phillips, most noted for its golf course, which hosts the annual Arnold Palmer Bay Hill Invitational golf tournament. The Bay Hill golf club offers a private golf course, recreational facilities, full service salon and spa, and premier dining at three restaurants. The Arnold Palmer Invitational, a PGA tournament is hosted here as well. The Champion, Challenger and Charger links feature 27 holes of tour championship golf, a challenging though fair test for both professionals and amateurs alike.

There are some single family homes which overlook the magnificent greens of the Bay Hill golf course. Condominiums are also available as well. Bay Hill is situated on the shores of Lake Tibet, which is connected to the entire Butler Chain of Lakes and makes Bay Hill a boater’s dream. All homes have deeded access to the Butler chain of lakes. Bay Hill in Orlando is great places to live and the world class Arnold Palmer’s Bay Hill Club..is a golfer’s dream.

The Bay Hill area is located on both sides of Apopka-Vineland Road in southwest Orange County, north of Lake Buena Vista and south of the town of Windermere.

For a private tour of Bay Hill Golf Community or to learn more about Bay Hill call 407-256-8190.

Everyone is wondering what the new restaurant is in Dr. Phillips on Restaurant Row, that is being built where Timpano’s used to be.(Drum roll……..) and the winner is Johnnie V’s!Dinner menu: http://www.johnnyvlasolas.com/menu/dinner/

Johnny V Restaurant | Lounge

Open in Miami since December 2003, Johnny V has garnered popular and critical acclaim, garnering four-star reviews in both of South Florida’s daily papers, The Miami Herald and Sun-Sentinel, and national notice in such prestigious publications as Elle, Travel + Leisure, Chef, and Restaurant Business, among others.

CHEF/CO-OWNER JOHNNY VINCZENCZ

Since bursting onto the national culinary scene at Miami Beach’s Astor Place in 1995, Johnny Vinczencz has remained one of South Florida’s most acclaimed and easily identifiable chefs. With a personality as bold as his cuisine Vinczencz creates innovative dishes full of robust flavors and multi-layered spices.

There are two ways of estimating your borrowing power: Bottom-line-qualification and On-line-approval. A “Bottom-line-qualified” and “pre-approved” are not the same thing. There is a difference. Looking at a mortgage calculator on line and determining how much a mortgage payment will be, depending on the down payment and price of the home, does not count as a pre-approval.

If you are in the early stages of the home-buying process, getting pre-qualified by a lender gives you a good idea of what you can borrow. You simply provide income, debt, and down payment figures. The lender will then provide you with an estimate of how much house you can afford. This is often done quickly, over the phone, and you have no obligation to use that lender to get a mortgage. Being pre-qualified simply means you have looked over the numbers and have determined you can afford a certain mortgage payment. A bank may have even done this for you but to be pre-approved means the bank will actually loan you that amount of money to buy a home.

Pre-approval requires a more in-depth look into your finances to determine exactly how and why you can afford a certain home.

Lenders will sit down with you and go over all your income, debt, liabilities and assets to determine a monthly payment you can comfortably afford. You usually don’t want more than 25% going toward a housing payment. The bank will factor in all your current debts and decide if you can afford to pay back the loan based on all your other responsibilities. Lenders have stricter requirements now and require proof of your income and funds in the bank. Credit scores also make a big difference in the interest rate and fees you will pay for a loan.

The bank will provide letter that indicates the amount that they are willing to provide as a loan. Unless you intend to purchase a new home with cash, you will need to obtain a mortgage pre-approval letter because most sellers today will not even entertain the idea of selling their home to you without a pre-approval letter provided to them first. It would be a waste of the seller’s time and energy to try to sell you their home if you can’t qualify for the mortgage.

Would you like it if you were trying to sell your home and you took your house off the market and placed it in a pending status only to waste your time will someone who can’t qualify for a loan?

Bottomline

You wouldn’t want to find your dream home only to discover half way through the process that you can’t remotely afford it. It will save everyone time, hassle, and of course heartache.

If you are looking to get pre-approved for a mortgage loan, then there are several items that you will need to provide to your mortgage professional or mortgage broker. The first step in the pre-approval process is to find a mortgage professional or mortgage broker that you feel comfortable working with. The more information that you provide upfront for your mortgage broker, the better off you will be in the long run and the less chances you have for any problems or delays in closing. To obtain a pre-approval letter, your lender will ask you to provide them with a number of documents that will create a “snapshot” of your current financial health and your ability to borrow. For each adult who will be on the loan application, the lender will require:

30 days worth of pay stubs

60 days worth of bank statements for every bank account

W-2’s for the last 2 years

Tax Returns – ALL pages for the last 2 years

Photo ID’s

Name, address, telephone and fax of your employer(s) for the past 2 years

Name, address, telephone and fax of your landlord(s) for the past 2 years.

**If you are self-employed, you will need tax returns from the last two years

A current mortgage-specific Credit Report will be needed for a pre-approval to be issued, and must be pulled by the issuer in many states. Generally, if you’ve been pre-approved for a credit-based mortgage without a credit check by the issuer of the letter, that pre-approval letter isn’t worth the paper it’s printed on.

With this information and your permission, they will run your credit, verify your employment & your earnest money deposit, and create a file that is ready to be submitted to the underwriter once you have found your home. Your lender will then be able to provide you with a mortgage pre-approval letter that you can give to buyer’s agent.

Your income level will help the mortgage broker determine your DTI (debt to income ratio) and give you an accurate purchase price for a new home. There are a variety of factors that will greatly affect your interest rate. Lower credit ratings and scores will equal higher interest rates which will mean a higher mortgage payment. The amount of your down payment will influence your interest rate as well. The type of loan you are going to get will affect your interest rate and down payment as well as other fees charged in connection with your loan. Pre-approval is usual quick and relatively painless if you have a 620 or better . Usually you can get pre-approved within 24 hours with the necessary income verification and supporting paperwork on hand. Online sites can pre-approve you immediately, but you’ll have to provide the verification to a lender eventually. You are under no obligation to use that lender for the loan (though most buyers will).

Once the borrower is pre-approved, they can begin shopping for homes that fall within the amount of the pre-approval offer. A pre-approval is subject to the borrower’s continued good credit and usually remains valid for 60 or 90 days, after which the borrower must reapply in order to make sure the loan offer is still good.
This information also gives us the confidence to negotiate a good price for the home. The seller will be confident that they are entering into a contract that is strong and the chance that the sale will go through will be high. Sellers really want to sell their homes and there is nothing more frustrating for them then to go to the effort of showing their home to someone who isn’t serious about buying

A current mortgage-specific Credit Report will be needed for a pre-approval to be issued, and must be pulled by the issuer in many states. Generally, if you’ve been pre-approved for a credit-based mortgage without a credit check by the issuer of the letter, that pre-approval letter isn’t worth the paper it’s printed on.

With this information and your permission, they will run your credit, verify your employment & your earnest money deposit, and create a file that is ready to be submitted to the underwriter once you have found your home. Your lender will then be able to provide you with a mortgage pre-approval letter that you can give to buyer’s agent.

Your income level will help the mortgage broker determine your DTI (debt to income ratio) and give you an accurate purchase price for a new home. There are a variety of factors that will greatly affect your interest rate. Lower credit ratings and scores will equal higher interest rates which will mean a higher mortgage payment. The amount of your down payment will influence your interest rate as well. The type of loan you are going to get will affect your interest rate and down payment as well as other fees charged in connection with your loan. Pre-approval is usual quick and relatively painless if you have a 620 or better . Usually you can get pre-approved within 24 hours with the necessary income verification and supporting paperwork on hand. Online sites can pre-approve you immediately, but you’ll have to provide the verification to a lender eventually. You are under no obligation to use that lender for the loan (though most buyers will).

Once the borrower is pre-approved, they can begin shopping for homes that fall within the amount of the pre-approval offer. A pre-approval is subject to the borrower’s continued good credit and usually remains valid for 60 or 90 days, after which the borrower must reapply in order to make sure the loan offer is still good.

This information also gives us the confidence to negotiate a good price for the home. The seller will be confident that they are entering into a contract that is strong and the chance that the sale will go through will be high. Sellers really want to sell their homes and there is nothing more frustrating for them then to go to the effort of showing their home to someone who isn’t serious about buying